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It also means I can get rid of my Canon HF-100 because I don't need full 1080P recording of videos I'm ever going to take, but I do want better than 640x480. 720P is the perfect comprimise of size and quality. Assuming they don't compress the everloving shit out of it.
You're right, it's not an enormous upgrade from a 3GS, but it will probably improve upon enough stuff that I wanted fixed that it makes sense for me. It takes care of all of the complaints I had with the 3GS or 3G.
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